The theme of my presentation is “Overseas Market Entry Methods” In this case I would like to tell you about :
1) Scheme of the Methods;
2) Exporting;
3) Joint Venture;
4) Direct Investment;
5) Advantages and Disadvantages
First method includes: 1)Direct Export - the organization produces their product in their home market and then sells them to customers overseas 2)Indirect Export - the organizations sells their product to a third party who then sells it on within the foreign market Another less risky market entry method is licensing. Here the Licensor will grant an organization in the foreign market a license to produce the product, use the brand name etc in return that they will receive a royalty payment. ( ex. Coca-Cola) Franchising

Franchising is another form of licensing. Here the organisation puts together a package of the ‘successful’ ingredients that made them a success in their home market and then franchise this package to oversea investors. The Franchise holder may help out by providing training and marketing the services or product. McDonalds is a popular example of a Franchising option for expanding in international markets. Manufacturing Abroad The ultimate decision to sell abroad is the decision to establish a manufacturing plant in the host country. The government of the host country may give the organization some form of tax advantage because they wish to attract inward investment to help create employment for their economy. Joint Venture is a cooperation of foreign and local investors of the capital in order to create a local business that they own and manage jointly. Subsidiary is a company that is completely or partly owned and partly or wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a government or state-owned enterprise. The controlling entity is called its parent company, parent, or holding...

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...﻿The international marketentrymethods (the mode of entry), which a firm could follow when dealing with a foreign market.
Exporting
Exporting is the direct sale of goods and / or services in another country. It is possibly the best-known method of entering a foreign market, as well as the lowest risk. It may also be cost-effective as you will not need to invest in production facilities in your chosen country – all goods are still produced in your home country then sent to foreign countries for sale. However, rising transportation costs are likely to increase the cost of exporting in the near future.
The majority of costs involved with exporting come from marketing expenses. Usually, you will need the involvement of four parties: your business, an importer, a transport provider and the government of the country of which you wish to export to.
Licensing
Licensing allows another company in your target country to use your property. The property in question is normally intangible – for example, trademarks, production techniques or patents. The licensee will pay a fee in order to be allowed the right to use the property.
Licensing requires very little investment and can provide a high return on investment. The licensee will also take care of any manufacturing and marketing costs in the foreign market.
Franchising
Franchising is somewhat similar...

...Marketentrymethods
After assessing the environment in your selected country, how do you decide which are the best countries to enter? Paliwood (1993) suggests that before you enter an overseasmarket there are six factors that need to be considered:
Speed – How quickly do you wish to enter your selected market?
Costs- What is the cost of entering that market?
Flexibility – How easy is it to enter/leave your chosen market?
Risk Factor – What is the political risk of entering the market? What are the competitive risk? How competitive is the market?
Payback period – When do you wish to obtain a return from entering the market? Are there pressures to break even and return a profit within a certain period?
Long- term objectives- What does the organization wish to achieve in the long term by operating in the foreign market? Will they establish a presence in that market and then move onto others?
Trading overseas
There are a number ways an organization can start to sell their products in international markets.
1. Direct export.
The organization produces their product in their home market and then sells them to customers overseas.
2. Indirect export
The organizations sells their product to a third party who then sells it on...

...examples, compare and contrast foreign marketentry strategies used by different Multinational Enterprises. Evaluate the success of these entry strategies by referring to real world examples. You may refer to cases discussed in seminars and also provide new examples.
Multinational corporations are those with bases and production plants in several countries, usually but not always with headquarters in the more developed countries. Multinational enterprises invest overseas to expand their profit amongst several other reasons. Companies become multinational by making investments and expanding their ventures abroad, through exporting or foreign direct investment. There are several ways by which a firm can expand its horizons. I will be comparing these in my essay and will provide some real world examples.
A firm expanding internationally must decide which markets to enter, when to enter them, on what scale and how to enter them (the choice of entry mode). Firms can enter foreign markets through exporting, turnkey projects, licensing, franchising, joint ventures or wholly owned subsidiaries. The central managerial trade-off between the alternative modes of marketentry is that between risk and control. When choosing foreign marketentry strategy the firm must consider its goals and objectives, the degree of control...

...4.3
199
Export Promotion
Export MarketEntry Options
4.3
Export MarketEntry Options
Name of the Tool:
Export MarketEntry Options
Source:
GIZ
Usage:
This tool can be used for two different purposes:
1. As an analytical framework for the formulation of the marketentry strategy
of a national export promotion strategy
2. As a conceptual basis for supporting SMEs in choosing an appropriate
marketentry option for exporting (export promotion on the operational level)
Choosing the right marketentry option depends on the particular structure
of the target market and on the specific objectives, capabilities and resources
of the IT companies.
IT companies do not necessarily have to stick to a single entry mode but can
combine several entry options.
Description:
The Tool provides an overview on five different export marketentry options for
IT companies from developing and transformation countries, ranging from the
so-called intermediate mode of internationalisation to establishing a representative office in a particular target market. For each option a short comparison of the particular advantages and disadvantages is being provided
Overview on the different market...

...Entry into Foreign Market
Rusty Buchanan
International Business Environment: ITB305
Professor Ernesto J Saborio
Strayer University
05 May 2013
Entry into Foreign Market
Doing business on your own soil is challenging in itself, let alone in a foreign market. Initially a firm is at a disadvantage due to the liability of foreignness (Peng, 2011). The differences in regulations, languages, cultures, norms, and currency can make simple business transactions very daunting. A firm must do intensive research when embarking on conducting business in the foreign market. They must conduct value chain analysis, external environment analysis and answer the question, “Do we have the capabilities to successfully manage business in a foreign country?” The best practice for a company contemplating expansion into a foreign market is to learn about the culture, norms, religious beliefs, currency exchange and their way of life. Most cases having a local citizen to mediate or teach the company about the culture provide an easier transition and aids in gaining the trust of the local people. Establishing trust or a working relationship with the local people is the first step in becoming successful in a foreign market.
Cameron International Corporation
Cameron International Corporation began as Cooper Cameron Corporation in Delaware in 1994. In 2006 the company officially...

...port market entryA.
This report has been ...
... various business experts.
Demand for energy has been rather weak in recent years and alternative energy providers in particular have been suffering because of very low GDP growth rates in most countries. In the People’s Republic of China, however, economic growth and energy consumption are unabated and the excessive use of fossil fuels has caused dangerously high pollution levels. As a result, Chinese authorities are now offering financial incentives to encourage the production of solar energy equipment. Accepting Sun Ho’s invitation would therefore allow SPT to produce its in a market where demand is high and to benefit from government support. Admittedly, foreign direct investment in China also has its drawbacks. Occasional cases of patent infringement and violations of intellectual property rights may still occur, and bureaucracy and interference by authorities can slow business operations. Nanjing’s local government, however, is known for its openness towards Western companies, which are able to operate far more independently in Nanjing than anywhere else in China. As concerns SPT’s financial situation, the company made losses in 2007 and 2008 as a result of the global economic slowdown. Yet it recorded a positive net income again this year which is expected to triple in 2010, to more than 28 million dollars. This figure will be pushed even higher if SPT takes up Sun Ho’s joint...

...domestic and foreign markets as resources to exploit overseasmarkets.
3.1 FDI entry mode and its advantages
“FDI is one of the three major modes of foreign marketentry as well as doing business in the foreign land” (Wang, 2009). FDI was primarily applied by Lenovo Group as it mainly used cross-border mergers and acquisition, which is acquiring all or parts of capital or shares of enterprises of host countries to implement fully or parts control activities in operating management of enterprises of host countries, to lay a good foundation for establishing branches in different countries afterwards.
Ownership advantages, location advantages and internalization advantages are three major advantages of FDI. Ownership advantages suggest that businesses can be performed better within the firm than being negotiated among business partners with short-term financial benefits; location advantages indicate that products being made locally in host countries have better benefits; internalization advantages demonstrate producing through a partnership arrangement such as licensing or a joint venture that allow more direct control and communication than between buyer and seller. Market failure or market imperfections are one of the reasons to internalize business activities (Wang, 2009). The successful acquisition of Lenovo owned to the exploitation of all advantages...

...Introduction
Anna’s Car is one of the top automakers in the United States that is currently planning on selling its new revolutionized Smart Cars to two foreign countries, Japan and Germany. The company believes that the increasing trend of going green and concerns about the environment in Japan and Germany will merge significant profits shortly after entering those two markets. Anna’s Car has evaluated various marketentry strategy alternatives and is now hesitating between direct exporting or foreign direct investment for Germany and franchising or joint venture for Japan.
Direct Export
The main advantage of direct exporting for Anna’s Car is going to be fact that the company will be able to produce Smart Cars in the United States and then sell them to customers in Germany. Anna’s Car would have a great control over the entire export transactions and would gain the freedom as far as deciding which target buyers to approach or who to use to distribute the cars in Germany. There is also potential for higher profits and a better chance to build a closer relationship with the German marketplace and its buyers. However, Anna’s Car will have to devote more time, personnel, and company’s resources to ensure a smooth and successful endeavor. Many internal organizational changes will be necessary in order to support more complex functions. The important step will be to choose the best channels of distribution and make business...